Binance in BIG TROUBLE!? Elon Musk DROPPING Dogecoin for AI?
*A Telegram group chat REVEALS the Binance team’s skittishness over regulatory scrutiny & Binance US overlap. + Elon Musk dropping crypto & turning to AI?
- On Friday, SEC attorney William Up2Grow said in court that SEC staff believe that Binance US might be an unregistered securities exchange.
- Binance International, the world’s largest cryptocurrency exchange and Binance US, their US regulated entity, seemed to be in hot water after a new Wall Street Journal article was published, sharing previously unseen telegram chats between Binance International leadership and Binance International employees, fretting over their US ties.
- Also revealed was how the Binance team tried to recruit Gary Gensler onto team Binance, a telegram group chat reveals the Binance team’s skittishness over regulatory scrutiny. Binance, the world’s largest cryptocurrency exchange, reportedly didn’t disclose the extent of its ties and control over Binance US, a supposedly independent unit set up to comply with US financial regulations according to the Wall Street Journal, which cited its internal documents and communications that it said it has reviewed.
- What are the key takeaways from the Wall Street Journal report? Well, Binance International programmers allegedly, reportedly based in Shanghai, had control over the software code that supported Binance US users digital wallets, which could give them access to US customer data, the Wall Street Journal reported citing internal telegram text messages from 2019. In addition, while Binance International said it no longer
- accepted US customers upon the launch of the US entity, its officials reportedly discussed ways to keep US investors, including encouraging the use of VPNs the Wall Street Journal report says. Now, there were a few other things, but to give you the other side of the story, what does Binance say about these allegations? Well, a Binance spokesperson told forecast via telegram, we have already acknowledged that we did not have adequate compliance and controls in place during the early years. While growing at such a rapid pace, we made some additional missteps which have been now rectified.
- Also, a Binance US spokesperson cited by the Wall Street Journal in the story said that the company and Binance never mixed user data. They claim Binance US and Binance never mixed user data. Well, what about the Gary Gensler connection that was also in the Wall Street Journal article? Binance, by far the world’s largest crypto exchange, was also among many firms that sought to bring Gary Gensler into the fold as an advisor while he was teaching at the Massachusetts Institute of Technology, MIT, the report said.
- ]As many as two years before Gensler became a chairman of the Securities and Exchange Commission, Binance tried to poach him. The journal cited in many documents and interviews with former employees, but also quoted from a group chat among key members of the Binance team, including CZ. Of meeting with Gensler, CZ reportedly wrote, while Gensler declined advisory ship, he was generous in sharing license strategies. The idea that Binance Global has greater control of Binance US than either company is willing to admit is probably not good for how Binance will be perceived by US regulators